HomeMy Public PortalAboutResolution 34-94 Interim WarrantsRESOLUTION NO. 34-94
A RESOLUTION OF THE CITY OF MCCALL, IDAHO, PROVIDING FOR THE
ISSUANCE AND SALE OF INTERIM WARRANTS PURSUANT TO SECTION 50-1722,
IDAHO CODE, IN ANTICIPATION OF THE ISSUANCE OF ITS LOCAL
IMPROVEMENT DISTRICT BONDS AND PREPAYMENT OF ASSESSMENTS FOR LOCAL
IMPROVEMENT DISTRICT NO. 2, FOR THE PURPOSE OF PAYING THE COSTS OF
SAID IMPROVEMENT DISTRICT; PROVIDING FOR THE MANNER OF ISSUANCE AND
THE FORM OF SUCH WARRANTS; PROVIDING FOR THE REGISTRATION AND
PAYMENT OF THE PRINCIPAL THEREOF AND THE INTEREST ON SAID WARRANTS;
PROVIDING FOR THE SALE OF THE WARRANTS TO WEST ONE BANK, IDAHO;
PROVIDING COVENANTS; AND PROVIDING FOR OTHER MATTERS RELATING
THERETO
WHEREAS, by passage of Ordinance No. 651 on February 10, 1994,
the City Council (the "Council") of the City of McCall, Valley
County, Idaho (the "City"), duly created Local Improvement District
No. 2 ("L.I.D. No. 2"), ordered the construction of certain water,
sewer, street, and other public improvements pursuant thereto, and
authorized the issuance of local improvement district bonds to
finance the cost thereof; and
WHEREAS, the City is authorized and empowered by Idaho Code
Section 50-1722 to issue interim warrants for the purpose of
meeting costs and expenses of making local improvement district
improvements prior to the sale of bonds and prepayment of
assessments; and
WHEREAS, the Council has heretofore, by adoption of Ordinance
No. 651, estimated the cost of the local improvement district
project at $155,000, and authorized the issuance of interim
warrants for L.I.D. No. 2 in an amount not to exceed $145,000; and
WHEREAS, in order to provide interim financing for the cost
and expense of the improvements to be constructed within L.I.D. No.
2, the Council deems it necessary and desirable to issue, sell, and
deliver interim warrants for L.I.D. No. 2 in an aggregate principal
amount not to exceed $145,000.
Page 1
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF McCALL, Valley County, Idaho, as follows:
Section 1: For the purpose of paying any contractor for the
cost of the improvements within L.I.D. No. 2, or otherwise
defraying any costs of the improvements as the same become due, the
Mayor and City Clerk -Treasurer are hereby authorized and directed
to cause to be issued, sold, and delivered, on behalf of the City,
interim warrants of L.I.D. No. 2 (the "Warrants") in the manner
hereinafter provided.
Section 2: Such Warrants may be issued from time to time in
such amounts as may be required, so long as the aggregate principal
amount thereof does not exceed $145,000; shall be issued to West
One Bank, Idaho; shall bear interest at the rate of six percent
(6.0090 per annum from the date of issuance to the date of maturity
or prior redemption of each such Warrant; and shall be redeemed and
paid in full, together with any accrued and unpaid interest
thereon, from the proceeds of the sale of bonds for or from
prepayment of assessments of L.I.D. No. 2.
Section 3: Each such Warrant shall be registered in the name
of the initial purchaser both as to principal and interest with the
City Treasurer, and any transfer thereof must likewise be
registered.
Section 4: A11 such Warrants shall be dated as of the date of
delivery to the purchaser thereof, shall mature on June 1, 1995,
and shall be subject to call and redemption without penalty at any
time at the option of the City when the proceeds of local
improvement district bonds for L.I.D. No. 2, or prepayment of
assessments of said local improvement district, become available.
In the event of prior call and redemption, the City Treasurer shall
give notice thereof by mailing a copy of. a Notice of Call and
Redemption by certified mail at least ten (10) days prior to the
call and redemption date to the registered owner of said Warrants
at the address shown on the registration books of the City.
Interest on each Warrant shall cease to accrue after the date fixed
for call and redemption, provided that funds for the payment and
redemption thereof are available at the time and place specified in
the notice of call and redemption.
Page 2
Section 5- Each Warrant and the interest thereon shall be
payable in lawful money of the United States of America to the
registered owner thereof at the address of such registered owner as
shown on the registration books of the City.
Section 6: Each Warrant shall be executed in the name of the
City of McCall, shall be signed by the Mayor, countersigned by the
City Treasurer, and attested by the City Clerk, and shall be
authenticated by the Seal of the City affixed thereto. Each
Warrant shall be substantially in the form as set forth in Exhibit
"A" attached hereto and by reference made a part hereof.
Section 7: The City hereby covenants with the registered
owner of the Warrants that it will issue bonds in the amount of the
confirmed assessment roll for L.I.D. No. 2, less the prepayment of
assessments as authorized by law, and further pledges the first
proceeds of said prepayments of assessments and of the proceeds of
the bonds to payment of the Warrants.
The Warrants shall not constitute an indebtedness of the City
within the meaning of any state constitutional provision or
statutory limitation, or a charge against the general credit or
taxing power of the City, and the registered owner of the Warrants
shall have no claim against the City, its funds or property.
Section 8: The City covenants with the registered owner of
the Warrants as follows:
A. The Warrants are qualified tax-exempt obligations within
the meaning and for the purpose of Section 265(b) (3) of the
Internal Revenue Code of 1986 (the "Code"), and the City does not
reasonably anticipate that it will designate more than $10,000,000,
including the Warrants, as qualified tax-exempt obligations during
the calendar year 1994.
B. None of the proceeds of the Warrants will be used
directly or indirectly (i) to make or finance loans to persons or
(ii) in any trade or business carried on by any person (other than
use as a member of the general public). For purposes of the
preceding sentence, the term "person" does not include a government
unit other than the United States or any agency or instrumentality
thereof, and the term "trade or business" means any activity
carried on by a person other than a natural person.
Page 3
thereof, and the term "trade or business" means any activity
carried on by a person other than a natural person.
C. No portion of the original proceeds of the Warrants will
be invested in higher -yielding non -purpose obligations beyond a
temporary period determined as the earlier of three (3) years after
the date the Warrants are issued or the date the project is
substantially completed.
D. The City will take no action which would cause the
Warrants to become arbitrage bonds within the meaning of Section
148 of the Code.
E. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
F. The City will not permit the Warrants to be or become
"federally guaranteed" within the meaning of Section 149(b) of the
Code.
Section 9: This Resolution shall take effect and be in force
immediately upon its passage and approval.
DATED this 8th day of December, 1994.
CITY OF MCCALL
Valley County, Idaho
By
ATTE
City Clerk
( S E A L )
Page 4
Mayor
(Form of Interim Warrant)
UNITED STATES OF AMERICA
NO. $
STATE OF IDAHO
COUNTY OF VALLEY
CITY OF McCALL
LOCAL IMPROVEMENT DISTRICT NO. 2 INTERIM WARRANT
FOR VALUE RECEIVED, the City of McCall, Valley County, Idaho
(the "City"), acknowledges itself to owe, and promises to pay to
WEST ONE BANK, IDAHO
the original Registered Owner hereof or its assignee, at the office
of the City Treasurer, on or before the first day of June, 1995,
the sum of
DOLLARS
($ ) in lawful money of the United States of America,
together with interest thereon in like money at the rate of six
percent (6.00%) per annum from the date hereof, interest payable on
redemption.
This Warrant is registered, both as to principal and interest,
with the City Treasurer, and any transfer hereof must likewise be
registered. This Warrant is a negotiable instrument, payable
solely from the prepayment of assessments or the issuance of local
improvement district bonds for Local Improvement District No. 2 of
the City, all as authorized by Ordinance No. 651, adopted on
February 10, 1994, and Resolution No. 34-94, adopted on December 8,
1994. The owner of this Warrant shall have no claim against the
City, its funds or property, except as set forth above.
This Warrant is issued for the purpose of providing part of
the interim funds necessary to construct the improvements
authorized for Local Improvement District No. 2, under and by
PAGE 1 - EXHIBIT "A"
virtue of and in full conformity with the Constitution and laws of
the State of Idaho and Ordinance No. 651 of the City.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all
matters, acts, conditions and things required by law to make this
Interim Warrant a valid and enforceable limited obligation of Local
Improvement District No. 2 of the City, have happened, have been
done, and have been performed, and the first proceeds of the
prepayment of local improvement district assessments and of the
issuance and sale of local improvement district bonds for Local
Improvement District No. 2 of the City, are pledged for the payment
of the same.
IN WITNESS WHEREOF, the City of McCall, Valley County, Idaho,
has caused this Warrant to be executed on its behalf and under its
official seal by its Mayor, countersigned by its Treasurer, and
attested by its City Clerk, all as of the day of
, 199
CITY OF MCCALL
Valley County, Idaho
By
Mayor
Treasurer
ATTEST:
City Clerk
( S E A L )
PAGE 2 - EXHIBIT "A"
% H
* * * * * * * * * *
This Interim Warrant is registered in the name of the
registered owner whose name and address appear last below, and both
principal and interest are payable only to said owner.
NOTE: There must be no writing in the space below except by the
City Treasurer.
Name of Address of
Date of Registered Registered
Registry Owner Owner
Signature of
Treasurer
TREASURER'S CERTIFICATE
I, the undersigned, the Treasurer of the City of McCall,
Valley County, Idaho, hereby certify that the within Interim
Warrant has been duly registered in my office in the Registration
Book kept for that purpose.
PAGE 3 - EXHIBIT "A"
Treasurer
City of McCall